Discontinued operations resulted in $25 million of cash outflow in the
second quarter of 2013 as compared to $35 million of cash outflow in the
second quarter of 2012. The change was driven by cash outflows
associated with selling the Entertainment business in 2012.
NCR contributed approximately $102 million to its international,
executive and U.S. qualified pension plans in the second quarter of 2013
compared to $52 million in the second quarter of 2012. The net unfunded
status of the Company's global pension plans was $(468) million as of
December 31, 2012.
Other expense, net was $29 million in the second quarter of 2013
compared to other expense, net, of $13 million in the prior year period,
mainly due to higher interest expense in the current period.
Income tax expense was $23 million in the second quarter of 2013
compared to income tax expense of $28 million in the second quarter of
NCR ended the second quarter of 2013 with $460 million in cash and cash
equivalents compared to a balance of $483 million as of March 31, 2013.
As of June 30, 2013, NCR had a total debt balance of $2.16 billion
compared to a total debt balance of $2.09 billion as of March 31, 2013.
As previously announced, effective in the first quarter of 2013, NCR
changed the accounting methodology for recognizing expense for its
company-sponsored U.S. and international pension benefit plans. From
2013 forward, NCR will recognize changes in fair values of plan assets
and net actuarial gains and losses in the year incurred, generally in
the fourth quarter of each year, which were previously deferred and
amortized over time into pension expense. The results and guidance
included in this release give effect to the change in accounting
NCR expects full year results to be in line with its previously released
guidance, as described below.
NCR expects its full-year 2013 revenues to increase in the range of 9%
to 11% on a constant currency basis(4) compared with 2012.
NCR expects its full-year 2013 Income from Operations (GAAP) to be $546
million to $566 million, non-pension operating income (NPOI)(2)
to be in the range of $700 million to $720 million, GAAP diluted
earnings per share to be $2.08 to $2.18 and non-GAAP diluted earnings
per share(2) to be in the range of $2.70 to $2.80 per diluted
share.The 2013 NPOI and non-GAAP diluted EPS guidance excludes
the items set forth in the supplemental non-GAAP reconciliation tables
and accompanying footnotes that follow the "Note to Investors" at the
end of this earnings release. NCR expects approximately $95 million to
$100 million of Other Expense, net including interest expense in 2013
and that its full-year 2013 effective income tax rate will be